Supervising employer’s obligation to take out insurance
- Public service
Employees have a legal right to an earnings-related pension. The Finnish Centre for Pensions makes sure that private sector employers take out pension insurance for their employees.
The supervision of earnings-related pension insurance strives to be preventive and as up-to-date as possible. The Finnish Centre for Pensions supervises the insurance obligation in cooperation with various other authorities.
Once a new business has been established, the Finnish Centre for Pensions will send a letter to the employer or self-employed person to inform them of their obligation to take out insurance.
The letter explains that employers have to take out insurance for their employees and the self-employed have to take out insurance for their self-employment.
The letter and the instructions on how to take out insurance are sent to employers who have been registered in the Tax Administration’s employer register and the self-employed who have been registered for value added tax.
Do the following
As an employer, you have to take out statutory earnings-related pension insurance for your employees with
• an earnings-related pension insurance company,
• an industry-wide pension fund,
• a company pension fund, or
• a pension fund that you establish yourself.
Private sector employees are covered mainly by the Employees Pensions Act (TyEL), except for sailors, who are covered by the Seafarer's Pension Act (MEL). Earnings-related pension insurance companies, industry-wide pension funds and corporate pension funds handle earnings-related pensions that are covered by TyEL. The Seafarer’s Pension Fund handles pensions that are governed by MEL.
Keva handles the pensions of employees of municipalities, the State, the Evangelical-Lutheran Church and Kela. These fields are governed by the Public Sector Pensions Act (JuEL).
What if no insurance has been taken out?
If you, as a private sector employer, neglect your obligation to take out insurance, the Finnish Centre for Pensions will urge you to take out appropriate insurance.
If you fail to comply with the request, the Finnish Centre for Pensions will take out insurance with one of the pension insurance companies on your behalf and at your expense. If you are an occasional employer, the Finnish Centre for Pensions will give the insurance company your insurance data. For the period that you have neglected to take out insurance, the pension contribution can be increased by as much as 100 per cent.
To whom and on what terms
The service is free of charge.